Q. 1. The Lee-Key Roof Company has offered a small company two method by which to pay for some needed roof repairs. Method 1 involves a payment of $500X as soon as the job done, i.e., now. Method 2 allows the company to defer payment for 2 years, at which time a payment of $800X would be required. If the interest rate is 12% per year, make your decision which method is better than another and why? [Where X is the last digit of your student ID]

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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Take the value of X=3 and solve the math.

Q. 1. The Lee-Key Roof Company has offered a small company two method by which to pay for
some needed roof repairs. Method 1 involves a payment of $500X as soon as the job done, i.e.,
now. Method 2 allows the company to defer payment for 2 years, at which time a payment of
$800X would be required. If the interest rate is 12% per year, make your decision which method
is better than another and why? [Where X is the last digit of your student ID]
5
Transcribed Image Text:Q. 1. The Lee-Key Roof Company has offered a small company two method by which to pay for some needed roof repairs. Method 1 involves a payment of $500X as soon as the job done, i.e., now. Method 2 allows the company to defer payment for 2 years, at which time a payment of $800X would be required. If the interest rate is 12% per year, make your decision which method is better than another and why? [Where X is the last digit of your student ID] 5
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